Tourism is not only a major driver of Thailand’s economy, but also an avenue to transform the country into a sustainable destination for locals and visitors.
According to Sustainable Travel International, tourism is responsible for roughly 8% of the world's total carbon emissions.
As Thailand aims for carbon neutrality by 2050, local tourism operators and global companies are ramping up measures to elevate their practices.
Mr Bhummikitti says adopting ESG measures in tourism is not more difficult than in other sectors.
PHUKET’S FOUR PILLARS
“Adopting ESG [environmental, social and governance] measures in the tourism industry is not harder than in other businesses,” said Bhummikitti Ruktaengam, president of the Phuket-based Sustainable Tourism Development Foundation.
“People in Phuket are now more aware of this issue, as tourism grows on the island.”
He said Thai tourism must use the ESG model to move the industry forward.
As Phuket plans to establish itself as a tourism case study for the nation, the foundation is promoting four pillars of sustainability, said Mr Bhummikitti.
The foundation advocates for waste management among local operators in Phuket Old Town to reduce pressure on landfills, particularly organic waste.
The Department of Science Service is also helping to develop a garbage collector robot for use in this area, especially coconut waste left from tourist consumption.
The foundation aims to make Old Town carbon neutral by 2030, while Phuket was selected to host Thailand’s first Global Sustainable Tourism Council (GSTC) conference next year.
The foundation also signed a memorandum of agreement with the Department of Climate Change and Environment to drive green standards among tourism operators.
The group wants to have more than 600 hotels, roughly 60% of licensed hotels in Phuket, registered as Green Hotel Plus, which is recognised by the GSTC, within two years, in addition to training people to audit tourism operators in the province.
The foundation is also promoting the Green Fins standard among diving companies for sustainable practices.
Mr Bhummikitti said the foundation wants to drive social issues, particularly education. More than 14,000 students have dropped out of school in Phuket, creating a ticking time bomb for the island’s economy, he said.
The foundation aims to find a way to collaborate with schools to prevent these issues, said Mr Bhummikitti.
To promote a circular economy, the group is working with the Scholars of Sustenance Foundation to set up a central kitchen, which collects surplus food from operators in Phuket, such as buffet lines in hotels, to sell at an affordable price.
Mrs Chompan says Minor has to follow more stringent standards for properties in Europe.
CORPORATE MOVE
Chompan Kulnides, chief sustainability officer of SET-listed Minor International, said the company must adapt fast to align with global sustainable trends.
At the end of 2024, Minor operated 562 hotels and service suites in 58 countries, along with 2,699 restaurant outlets in 24 nations.
“Investors are not only looking for a good return, but also company contributions to stakeholders under ESG policies,” said Mrs Chompan.
On the global stage, governments and policymakers attend climate summits annually to address climate change, affecting the operations of private companies, she said.
Especially in Europe, where Minor has a large hotel presence, there are stricter and more detailed requirements than in Thailand, such as for carbon emissions, human rights and waste separation.
Mrs Chompan said hotels in Europe can buy clean energy from several different sources, unlike in Thailand where there may only be one or no choices.
The EU also issued a corporate sustainability due diligence directive that requires companies to enforce environmental and human rights standards in their operations and supply chains.
This forces companies to address their performance across the hospitality supply chain, including food sources and laundry services, she said.
Likewise, on the consumer side corporate customers are demanding hotels have sustainability policies and data, such as carbon tracking and offsets during events, said Mrs Chompan.
Many tourists prefer to stay at hotels that have policies or activities that contribute to the environment or nearby communities, she said.
Divers take part in the Coral Adoption programme by Minor Hotels.
SMALL VS LARGE
“We are not worried about large companies, which have capital, knowledge and talent to drive sustainable practices," said Mr Bhummikitti.
"We’re more concerned about small operators, which is why the foundation plays a role in training them.”
More than 70% of businesses in the Thai tourism sector are categorised as small and medium-sized enterprises (SMEs).
He said some initiatives can be implemented immediately with little expense, such as waste separation in households and hostels.
Yet larger efforts such as solar cell utilisation may require a huge budget and do not promise an immediate profit, said Mr Bhummikitti.
Meanwhile, green loans offered by banks and financial institutions do not include considerations for small businesses, he said.
The annual budget allocation for Phuket is insufficient for sustainable projects and infrastructure development, as it was calculated based on the number of households and did not include tourist figures.
Mrs Chompan said SMEs with a few properties may be able to progress faster with ESG practices based on their small scale, while it is harder for large companies to follow all the details.
Another challenge for the tourism and hospitality sector is meeting guests' high expectations, while also operating efficiently under ESG standards, she said.
Collecting data on its operations and supply chain can be demanding, so Minor plans to improve the accuracy of this procedure, making it more systematic, said Mrs Chompan.
At the national level, the government needs to balance economic growth from tourism and its impact on society so Thailand does not face the same overtourism problems as in some European cities, she said.
Minor's sustainable initiatives are supported by its board of directors and management committee, and integrated within its three-year business plan.
The company also gives autonomy to its on-site partners such as general managers or hotel owners to implement their own plans in compliance with larger sustainable goals.
Minor's current target includes training and supporting 3 million people by 2030.
Last year, 57% of students who enrolled in its youth development programme, called Minor Corporate University, returned to work for the company after graduation.
On the environmental side, this year the company is working towards a 15% reduction in energy consumption and greenhouse gases, and a 10% reduction in water intensity from 2019 and 2022 levels, respectively, which are the baseline years with the most accurate data.
Minor is included in selected shares under the Stock Exchange of Thailand’s Thailand Sustainability Investment listings.
The company was also rated AA in the MSCI ESG ratings, and recognised as “excellent” for corporate governance among listed Thai companies by the Thai Institute of Directors Association.
An organic waste disposal unit as part of the Phuket Old Town Carbon Neutrality Project 2030.
